China Petrochemical (Sinopec) and the Chinese national oil company (CNOOC) are holding separate negotiations with OGX Petroleo e Gás in order to acquire 20% of an OGX deepwater play at the Santos Basin. In general we can see a marked increase in Chinese involvement and investments in Brazil.

Starfish Oil & Gas is not exactly a new player, since the company was founded in 1999. As the first private national O&G operator in Brazil and classified as a B class operator by ANP (National Petroleum Agency), Starfish has participation in a variety of onshore and offshore blocks in Brazil and in Angola.

OGX estimates that the total Parnaiba Basin natural gas potential at 15 trillion cubic feet. This discovery opens a new exploratory frontier in an onshore basin, the first in two decades. At the Campos Basin, OGX-18 well reports indication of hydrocarbons, adding to the excellent results of their ongoing exploratory campaign.

Devon Energy has informed ANP (Brazil´s National Petroleum Agency), that it has discovered indications of hydrocarbons in block CM-471 at the Campos Basin. This block is operated by Devon in a 50%/50% partnership with Brazil´s national operator Petrobras.

This new pre-salt discovery in the Campos Basin, highlights the potential for new discoveries in both the pre and post salt layers of this mature basin, which up to now has been the main O&G producer in Brazil and until recently was considered by many as not having much more to give in terms of new reservoirs.

Although not considered a major challenge by Petrobras, drilling two thousand meters below the water line, through about three thousand meters of sediments, and through two thousand meters of salt is done at the frontiers of technology.